The Budget and the Irish auto industry
Finance Minister, Michael Noonan, has announced a raft of changes, in the Budget, which impact on the motor industry this afternoon.
Here are many of the essentials facts that impact on the auto industry. Of course as far back as last August 23, we broke the news that VRT and number plate change stories on AutoTrade.ie and so it is. The rates of both VRT and motor tax across all categories will increase with effect from the 1st of January 2013.
Again as we also forecast months ago, in order to incentivise a more year round motor market, the Government is to introduce a dual registration period. Therefore in 2013 vehicles registered from the 1st of January will carry a year tag of 131 and 132 for the second half of the year.
And the good news – Minister Noonan announced that there will be no increase on excise duty on diesel and petrol in this Budget. And hauliers will be pleased that there will be a fuel rebate scheme for them from next July.
The Minister also introduced a number of measures in the area of capital taxes. He decreased the threshold at which Capital Acquisitions Tax applies by 10 per cent.
He increased DIRT Tax from 30 per cent to 33 per cent. And he increased the rates of Capital Acquisitions Tax and Capital Gains Tax by 3 per cent to 33 per cent effective immediately.
Finally, to facilitate the trade ordering new cars and to save the maximum number of jobs where possible, the Government and the Department of Finance had agreed with the auto industry to announce any such changes well in advance of the budget.
The Auto Trade Journal is aware that the increase in VRT details was all but signed off back in August but the Government just decided “what’s another broken promise” It seems that truth and honour wasn’t on their syllabus in their teacher training days.
Click HERE for a detailed version of the increases